Question

using the following information, determine the adjusted cash balance per bank for santas packaging on november 30.

\

$$\begin{tabular}{|l|r|} \\hline cash balance on the bank statement & \\$2,350 \\\\ \\hline customers check returned-nsf & 500 \\\\ \\hline customers note collected by the bank & 600 \\\\ \\hline deposits in transit, november 30 & 1,400 \\\\ \\hline outstanding checks, november 30 & 2,650 \\\\ \\hline \\end{tabular}$$

\\(\bigcirc\\) \\$1,250
\\(\bigcirc\\) \\$1,550
\\(\bigcirc\\) \\$1,350
\\(\bigcirc\\) \\$1,100

question 4 (5 points)
internal control over a companys assets should include which of the following?

\\(\bigcirc\\) responsibilities and duties of employees will be divided.
\\(\bigcirc\\) all cash receipts will be deposited into the bank the same day they arrive.
\\(\bigcirc\\) all cash payments will be made by check (except petty cash).
\\(\bigcirc\\) all of the above

Explanation:

Identify bank statement adjustments

To find the adjusted cash balance per bank, we start with the cash balance on the bank statement and adjust for items that the bank has not yet recorded.

• Cash balance on the bank statement: \(\$2,350\)
• Deposits in transit: \(\$1,400\) (added to bank balance)
• Outstanding checks: \(\$2,650\) (subtracted from bank balance)

Other items listed (NSF check, note collected) are adjustments to the book balance, not the bank balance, so they are excluded.
Using the Bank Reconciliation knowledge point:

$$ \text{Adjusted Bank Balance} = \text{Bank Statement Balance} + \text{Deposits in Transit} - \text{Outstanding Checks} $$

Calculate adjusted cash balance per bank

Substitute the values into the formula:

$$ \text{Adjusted Bank Balance} = 2,350 + 1,400 - 2,650 $$

$$ \text{Adjusted Bank Balance} = 3,750 - 2,650 = 1,100 $$

The adjusted cash balance per bank is \(\$1,100\).

Analyze internal control measures

Using the Internal Controls knowledge point, we evaluate the options for Question 4:

• "Responsibilities and duties of employees will be divided" represents segregation of duties, a key control.
• "All cash receipts will be deposited into the bank the same day they arrive" prevents theft and ensures timely recording.
• "All cash payments will be made by check (except petty cash)" provides an audit trail and authorization control.

Since all three are standard internal control procedures, "All of the above" is the correct choice.

Answer:

Question 3

• (A) $1,250
• (B) $1,550
• (C) $1,350
• (D) $1,100 (Correct answer)

Question 4

• (A) Responsibilities and duties of employees will be divided.
• (B) All cash receipts will be deposited into the bank the same day they arrive.
• (C) All cash payments will be made by check (except petty cash).
• (D) All of the above (Correct answer)